is cutting back on defense spending, they are still the biggest defense spender in a world. bae does not want to ruin that relationship. at the end of the day, the deal was always going to be problematic, given the sensitive nature of the industry. listen to this. >> defense manufacturers tend to be seen, even if the companies are privatized, as national assets. therefore governments are loath to agree to external ownership of companies that deal in defense. that's true for the u.k. government, the friend, the german, or the u.s. government, with which bae has very strong contacts. >> the deadline, 1600 gmt today for the british and european companies to decide. they either go with it or pull the plug. >> need to watch that one. >> thanks very much. british prime minister david cameron is a dire warning on the talent is faced by the u.k. in turbulent economic times. in his keynote speech in birmingham he reaffirmed his determination to stick to his plan of deficit-reduction. he says britain can no longer assume it will remain a major industrial nation. >> and as we showed de